The sales promotion adjustment allows you to adjust forecast for a specified period of time for a group of items according to entered keys in the table if you are anticipating an increase or decrease in demand for any reason. For example, if your company runs a sales promotion campaign for a selected group of items over a certain time span, you can expect an increase in demand that will not be accounted for when the system calculates forecast.
When forecast is calculated, the system checks if a sales promotion is active for any of the item/warehouse records. For item/warehouse records with an active sales promotion, the system calculates an adjustment.
Sales promotion adjustment calculation
First, the system calculates a sales promotion index:
| The sales promotion index = (100 + percentage) / 100 |
For example, if the percentage is 10, that means that the sales promotion index is:
| (100 + 10) / 100 = 1,10 |
If the percentage is -25 %, that means that the sales promotion index is:
| (100 – 25) / 100 = 0,75 |
The sales promotion is then calculated in two steps:
- The indices are used to remove the promotion, effect from all historical demand data, making it normalised data. The forecast calculation is performed on the level forecast data, yielding a normalised forecast.
- Finally, the promotion index for the current forecast period is applied to the normalised forecast to get a forecast including the sales promotion adjustment.
Enquiries
- Sales promotions enquiry